Insurance industry concerned over proposed NOAA budget cuts

by Allie Sanchez06 Mar 2017

SHARE

Insurance industry concerned over proposed NOAA budget cuts

The National Oceanic and Atmospheric Administration is facing budget cuts under the current administration, and insurance experts are concerned about its effects on the meteorological community and the public that depends on it.

Citing a Washington Post report, the Daily Astorian said that private papers obtained by the publication revealed that the administration of President Donald J. Trup plans to slash 17% of the agency’s annual budget.

According to the proposed budget, the Office of Oceanic and Atmospheric Research will have to deal with a 26% dip in funds and a 22% decrease for the satellite data division.

These figures are not final, but they have stirred concern in some quarters.

A 2009 assessment said, for instance, that NOAA satellites and real-time weather data provide an estimated $700 million in benefits to the private weather industry, which relies on federal data.

This includes insurers.

“I simply could not do my job without NOAA data. It is invaluable to the insurance industry for proper risk management. Any reduction in NOAA’s free to use services could lead to a rise in prices in any number of consumer facing industries,” Bryan Wood, an insurance industry meteorologist, was quoted as saying on his Twitter account.